End of the income tax exemption for bonuses paid with the Labour Medal of Honour
Point 5 of I of Article 17 of the 2026 budget act repeals point 6 of Article 157 of the General Tax Code, which exempted from income tax bonuses granted to employees on the award of the Labour Medal of Honour.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
Bonuses paid by employers on the award of the Labour Medal of Honour become taxable from the income tax due for 2026. The Government estimated the gain at €11m in 2026, €13m in 2027 and €8m a year on a permanent basis from 2028.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
President of the Republic signature
Publication au Journal officiel
National Assembly has the final say
Si échec CMP
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration